[Cites 2, Cited by 0]
Kerala High Court
Muhammed Nishad Valiya Peedikakkal vs The Manager, Federal Bank on 27 March, 2026
WP(C) NO. 31670 OF 2025 1
2026:KER:27557
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
FRIDAY, THE 27TH DAY OF MARCH 2026 / 6TH CHAITHRA, 1948
WP(C) NO. 31670 OF 2025
PETITIONER:
MUHAMMED NISHAD VALIYA PEEDIKAKKAL
AGED 38 YEARS
S/O HASSAN KOYA VALIYA PEEDIKAKKAL,
VALIYA PEEDIKAKKAL HOUSE, KOOTTIL PO,
MANKADA, MALAPPURAM KERALA,
PIN - 679324
BY ADVS.
SHRI.ABDUL HADI M.P.
SHRI.MUHAMMED MUSTHAFA K.
RESPONDENTS:
1 THE MANAGER, FEDERAL BANK,
MANKADA BRANCH, GROUND FLOOR, KP MALL,
MANKADA ELECTRICITY OFFICE RD, OPP. THAM
RESTAURANT, MANKADA, MALAPPURAM,
KERALA, PIN - 679324
2 SUPERINTENDENT OF POLICE
CYBER CRIME POLICE STATION, PUNJAB PATIALA,
PHULKIAN ENCLAVE, DASHMESH NAGAR, PATIALA,
PUNJAB EMAIL- [email protected],
PIN - 147004
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ADDL.R3 STATION HOUSE OFFICER (SHO),
MANKADA POLICE STATION, MANKADA, MALAPPURAM
DISTRICT-679 324.
(ADDL.R3 IS IMPLEADED AS PER ORDER DATED
12.02.2026 IN IA NO.1/2026 IN
WP(C)NO.31670/2025)
SMT.G.SHEEBA, GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 27.03.2026, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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JUDGMENT
1. The Petitioner has filed this Writ Petition challenging the
debit freezing/lien of his Bank account with the
Respondent/Bank at the requisition of the Police
Authorities. The case of the Petitioner is that the
Petitioner is not an accused in the Crime registered by
the Police authorities against some other persons, in
which the requisition was made; that the Petitioner is in
no way connected with the said Crime; and that the
debit freezing/lien of the account is in violation of
Sections 106 & 107 of the Bharatiya Nagarik Suraksha
Sanhita, 2023 (BNSS) and Article 300A of the
Constitution of India.
2. The learned Counsel for the Respondent/Bank,
after getting instructions from the Bank, confirmed that
the Bank has received a Requisition from the
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Respondent No.2 for an amount of Rs.13,638/- for debit
freezing as well as marking lien in the account of the
Petitioner mentioned in the Writ Petition, and hence, the
Bank has effected the same.
3. The issue is covered by the decisions of this Court
in Dr. Sajeer v. Reserve Bank of India [2024 (1)
KLT 826], Nazeer K.T. v. Manager, Federal Bank,
Makkaraparamba Branch [2024 KHC 768] and
Abhiraj Rajan v. State of Kerala [2025 KHC 1676].
This Court has been consistently issuing the directions to
the effect that the Bank is to permit the account holder to
operate his account, limiting the lien to the amounts
shown in the Requisitions received by the Bank so long
as the Bank does not have any suspicion that the
account is used for any financial cybercrime activities or
money mule activities, making the frozen/lien marked
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amount at the disposal of the jurisdictional Magistrate's
Court.
4. Recently, the Indian Cyber Crime Co-Ordination
Centre of the Ministry of Home Affairs of the Government
of India has formulated an SOP for NCRP - CFCFRMS,
Custody, Restoration of Money and Grievance
Redressal 2026 to establish a fair and transparent
system that prescribes a uniform process to be followed
by all the Participating Entities. The SOP includes
procedures to prevent misuse of the system of putting on
hold an amount, seizure of an account and any property
to help the victims of Cyber-Enabled Financial Crimes
(CEFC), and to give interim custody of the amount to the
victim and restoration of such property while ensuring
accountability of all the participants for their action and
inaction and providing avenues for time-bound grievance
redressal for parties affected by actions taken based on
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information provided by the system. It is intended that
States and UTs, working with other Participating Entities,
follow the SOP and are successful in preventing
defrauded money from leaving the financial system,
giving interim custody and restoration of the amount to
the victim, and, in the process, help create a cybercrime-
resilient financial ecosystem.
5. Clause 10 of the SOP provides for a time-bound
Grievance Redressal Mechanism for the Account
Holders in whose accounts the amounts are put on hold
or whose account operation is suspended. It is for the
Petitioner to work out his remedies in accordance with
Clause 10 of the SOP, with respect to the
frozen/lien/hold amount.
6. Accordingly, this Writ Petition is disposed of with the
following directions:
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i) The Respondent/Bank is directed to permit
the Petitioner to operate the account mentioned
in this Writ Petition maintained by the Petitioner
with it, limiting the freeze/lien/hold to the afore-
said amount.
ii) The disposal of the frozen/lien/hold amount
shall be in accordance with the above SOP.
iii) Petitioner is free to redress his grievance
through the Grievance Redressal Mechanism
provided under Clause 10 of the above SOP with
respect to the frozen/lien/hold amount.
iv) The Respondent/Bank is free to effect fur-
ther lien/hold/freeze in case of receipt of future
requisitions.
Sd/-
M.A.ABDUL HAKHIM
JUDGE
ays
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APPENDIX OF WP(C) NO. 31670 OF 2025
PETITIONER'S EXHIBITS:-
Exhibit P1 TRUE COPY OF THE ACCOUNT STATEMENT FOR
A PERIOD FROM 01.05.2025 TO 20.08.2025
Exhibit P2 TRUE COPY OF THE LETTER DATED NILL
FORWARDED BY THE 1ST RESPONDENT BANK
